ALTERNATIVE OUTLINE FOR A MARKETING PLAN Appendix

Appendix(referring to Business library )

1. Return on Investment (ROI): ratio of net profit (after taxes) to the investment used to make the net profit –multiplied by 100 to get rid of decimals

a. There are two ways to figure ROI
i. The direct way is:
ROI(in %) = Net profit (after taxes) x 100
Investment
ii. The indirect way is:
ROI(in %) = Net profit (after taxes) x Sales x 100
Sales Investment
This indirect way makes it clearer how to increase ROI. There are three ways:
- increase profit margin (with lower costs or higher price)
- increase sales
- decrease investment
(Profit margin: measures the average proportion of each dollar of revenue that ends up as profit)
2. Risk level: Suggested to refer three case
a. Risk profile: a plot showing how the value of the firm is affected by changes in prices or rates
b. Risk taking: bearing the uncertainties that are part of the marketing process
c. Risk-free rate: the required rate of return before risk is explicitly considered. It is composed of the real rate of return plus a rate equivalent to inflationary expectations.
3. Constraint: Anything that prevents a company from achieving higher performance in terms of sales.
4. Customer needs: suggested to refer some rating
a. Customer orientation: a management concept that encourages all managers and employees (including those in the factory) to be in tune with the wants and needs of customers. Leads to flexible product designs and production process
b. Customer service level: how rapidly and dependably a firm can deliver what customers want.
5. Competitor analysis: suggested to refer from something
a. Competitor analysis: an organized approach for evaluating the strengths and weaknesses of current or potential competitor’s marketing strategies
b. Competitive advantage: a firm has a marketing mix that the target market sees as better than a competitor’s mix – or – something unique or special that a firm does or possesses that provides an advantage over its competitors
c. Competitive barriers: the conditions that may make it difficult or even impossible, for a firm to compete in a market
d. Competitive bids: terms of sales offered by suppliers in response to the buyer’s purchase specifications
e. Competitive environment: the number and types of competitors the marketing manager must face, and how they may behave
f. Competitive parity method: a method of setting the advertising and promoting budget based on matching the absolute level of percentage of sales expenditures of the competition
g. Competitive advertising: advertising that tries to develop selective demand for a specific brand rather than a product category
6. Marketing information system (MIS): an organized way of continually gathering and analyzing data to provide marketing managers with information they need to make decision
7. Marketing management process: the process of
a. Planning marketing activities
b. Directing the implementation of the plans
c. Controlling the plans
8. Marketing mix: the controllable elements of a marketing program including product, price, promotion, and place– and – controllable variables that company put together to satisfy a target group
9. External search: the search process whereby consumers seek and acquire information from external sources such as advertising, other people, or public sources.
10. External analysis: the phase of promotional planning process that focuses on factors such bas the characteristics of an organization’s customers, market segment, positioning strategies, competitors and marketing environment.
11. Promotion:
a. communicating information between seller an potential buyer or others in the channel to influence attitudes and behavior
b. the coordination of all seller-initiated efforts to set up channels of information and persuasion to sell goods or services or to promote and idea
12. Promotional management: the process of coordinating the promotional mix elements
13. Promotional mix: the tools used to accomplish an organization’s communications objectives. The promotional mix includes:
a. Advertising
b. Direct marketing
c. Sales promotion
d. Publicity/public relation
e. Personal selling
14. Promotion plan: the framework for developing, implementing, and controlling the organization’s communications program
15. Promotion products marketing: the advertising or promotional medium or method that uses promotional products such as ad specialties, premiums, business gifted, awards, prizes or commemorative.
16. Promotional pull strategy: a strategy in which advertising and promotion efforts are targeted at the ultimate consumers to encourage them to purchase the manufacturer’s brand
17. Promotional push strategy: a strategy in which advertising and promotional efforts are targeted to the trade to attempt to get them to promote and sell product to the ultimate consumer
Compiler
Nguyen Tri Tung